Originally Posted by lisa lynn
Staples... Sports Authority... Steel Dynamics... all now multimillion/billion dollar companies due to Romney's investments. Bain itself is a successful venture because of Romney.
Let's talk actual failed business ventures, like Solyndra, that $535 MILLION dollar loan the TAXPAYERS are now forced to cover thanks to Obama. How about the $2.5 BILLION dollars we taxpayers need to repay after Obama's second business venture bankrupted? We're up to $16 BILLION dollars JUST in defunct solar company loans, $16 BILLION dollars in THREE YEARS, which doesn't include the fact that Obama can't balance a budget to save his own life and has managed to rack up more national debt than the five previous President's before him COMBINED.
Whereas Romney's initial $16 million dollar investment into Steel Dynamics has created a company now worth hundreds of millions of dollars.
So please explain to me where you got the hilarious idea that Romney is a poor businessman, please, I am dying to hear what you come up with.
I conceed the point that his ventures aren't as bad as I had initially thought (though I'd like to hear how comparable companies are doing in terms of their gorwth, as a comparison). I will not conceed the point that he's a poor businessman, because he's an investor. Bain is not a business much that it's a private equity company. It is designed with the idea that it is a firm that doesn't run like a business in the first place.
Holson Burnes Group Inc. is an example of why he's a poor businessman but a good private equity salesman. Holson closed down (Fox News
) under the presumption of losses. Romney made money off it though. What he did here was bad from a business perspective, but great from a private equity perspective.
Bain is littered with stuff like this. A recent University of Chicago paper describes leveraged buyouts as "10-20% of the gains is simply a shunting of the tax code" (Paper here
), which is essentially the movement of money from taxation into a private equity firm. Romney wins regardless of what happens at Bain capital, even if the company loses he would still win. Bad business, great private equity.
Also, according to wall street journal
...the rate at which the firms Bain invested in ran into trouble appears to be higher than experienced by some rival buyout firms during the era.
...Bain was investing in "riskier deals,"...
Romney likes to take risk, which while does exist from a business perspective, being excessively risky as so is generally considered to be stupidity in terms of singular business. Again, great in terms of leveraged buyout potential, bad business.
Heck, Romney's heavily involved in Stericycle, which again is a great move from a private equity perspective, but horrendously hurts his brand (i.e. himself) as a Republican who supports the pro-life stance. That's just not good business practice.